ENG-2013 — Page 153

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Employment

In addition, employers who wilfully and without reasonable excuse fail to pay wages or other entitlements awarded by the Labour Tribunal or Minor Employment Claims Adjudication Board, are liable to criminal prosecution under the Employment Ordinance. In 2013, the department secured 127 convictions for failures to pay awards made by the Labour Tribunal or Minor Employment Claims Adjudication Board. Two company directors were ordered to perform community service.

Protection of Wages on Insolvency Fund

The Protection of Wages on Insolvency Fund provides ex gratia payments to employees who are owed wages and other termination compensation by insolvent employers. The maximum amount of ex gratia payment for each eligible employee is $289,000, which covers up to $36,000 for four months' arrears of wages, $22,500 for one month's wages in lieu of notice, $50,000 plus 50 per cent of any entitlement in excess for severance payment and $10,500 for not exceeding two leave years' pay for untaken annual leave and/or four months' pay for untaken statutory holidays. The fund is mainly financed by an annual levy imposed on each business registration certificate. The Business Registration Ordinance (Amendment of Schedule 2) Order 2013 reduced the levy rate from $450 per annum to $250 per annum from 19 July 2013.

In 2013, the fund received 2,081 applications for ex gratia payment, paid out $48.5 million to 1,855 applicants, and recorded a surplus of $470 million.

Employees' Compensation

Hong Kong's employees' compensation regime follows the 'no-fault' principle, whereby compensation is payable regardless of whether the injury, occupational disease or death is due to the employee's fault. The Employees' Compensation Ordinance covers injuries or death. caused by accidents arising from, and in the course of, employment or by specified occupational diseases. An employer must have a valid insurance policy to cover his liabilities. both under the ordinance and the common law.

The Labour Department assists injured employees and the families of deceased employees to get compensation from their employers under the Employees' Compensation Ordinance. It also provides interest-free loans to workers injured in job-related accidents. In 2013, the Labour Department delivered talks, distributed leaflets, and made announcements on TV, radio and public transport to help employers and employees better understand their rights and obligations under the ordinance. An Employees Compensation Assistance Scheme helps. injured employees, or family members of deceased employees to get compensation from defaulting employers. The scheme is financed by a levy imposed on all employees' compensation insurance policies taken out by employers.

Pneumoconiosis and/or mesothelioma sufferers are eligible for compensation under the Pneumoconiosis and Mesothelioma (Compensation) Ordinance administered by the Pneumoconiosis Compensation Fund Board. Those diagnosed to have contracted pneumoconiosis before the ordinance became effective in 1981 may apply for ex gratia benefits from the government under the Pneumoconiosis Ex Gratia Scheme. As at 31 December 2013, 1,750 pneumoconiosis and/or mesothelioma sufferers were receiving payments under

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